[Click eStock] "HL Science, Strong Q1 Earnings Expected"

[Asia Economy Reporter Oh Joo-yeon] Daishin Securities analyzed on the 27th that HL Science can drive performance growth through new product achievements and expanding demand for health functional foods, while simultaneously securing momentum for stock price increases.

According to Daishin Securities, HL Science's expected sales for the first quarter of this year are 35.3 billion KRW, and operating profit is 6.2 billion KRW, representing increases of 45% and 15% respectively compared to the same period last year.

Researcher Han Kyung-rae stated, "With the increased demand for immune-enhancing health functional foods, nine Green Propolis Live home shopping broadcasts were conducted in March, significantly exceeding the planned number of broadcasts at the beginning of the year, which is expected to drive strong first-quarter performance."

He added, "Although the number of home shopping broadcasts for barley sprouts temporarily decreased in February and March, sales efficiency actually increased as products continued to sell out due to expanded demand across immune-related health functional foods. The number of broadcasts is trending back to recovery from April."

He particularly noted the steady expansion of the immune-related health functional food lineup, including the oral antibacterial product 'Doctor Propodent' launched on the 1st of this month and the barley sprout one-day stick formulation scheduled for release later this month.

Researcher Han said, "The new barley sprout formulation is planned to be launched through Kakao Makers, expecting diversification beyond home shopping to e-commerce and retail channels. Since sales of Doctor Propodent, pomegranate concentrate, and barley sprout raw materials have not yet been reflected, if future sales become visible, upward revisions of performance estimates are possible."

He judged that a corresponding stock price increase is expected.

Researcher Han analyzed, "The stock price has declined due to concerns over the disappearance of new product momentum and poor profitability at the beginning of the year. Despite continued benefits to immune health functional food performance from the impact of COVID-19, the stock price's decline widened along with the market crash." He continued, "Considering the visible new product achievements, rapid market establishment based on home shopping, additional immune-related lineup with the April oral antibacterial product launch, sales structure centered on domestic non-face-to-face channels, and valuation at the lowest level, stock price normalization is expected in the future."

This content was produced with the assistance of AI translation services.